Kolkata, May 3 (IANS): After losing more than 50 percent of its net worth, automobile manufacturer Hindustan Motors has decided to report to the Board for Industrial and Financial Reconstruction (BIFR) under the sick industrial companies act.

"We would also like to inform that the accumulated losses of the company at the end of financial year March 31, 2010, have resulted in erosion of more than 50 percent of its peak net worth during the immediately preceding four financial years," the company informed the National Stock Exchange.

"While the company is taking necessary steps to protect further erosion, the company will report to the Board for Industrial and Financial Reconstruction about such erosion of net worth as envisaged under Section 23 of the Sick Industrial Companies (Special Provisions) Act, 1985, forthwith upon finalization of audited accounts of the company at its Annual General Meeting."

It also said the board of directors have accepted resignation of R. Santhanam as managing director with effect from May 18, 2010, and appointed Manoj Jha in his place with effect from May 19 for a period of five years.